By mid-day on Friday, the pair had managed to test resistance levels at 1.0856 and bounce off of them before finding support in 1.0820.
Economic Calendar Analysis
On Friday, the week will end with the employment data release from the United States, on Friday at 12:30 GMT.
Next week, monthly US inflation and retail sales data sets are bound to be cause notable reactions, as they have done in the past. Namely, US CPI on Tuesday, US PPI on Wednesday and US Retail Sales on Friday are being released at 12:30 GMT.
In the meantime, the German Preliminary GDP could cause a reaction on Friday at 06:00 GMT, despite causing no notable moves and being ignored during the last year.
EUR/USD hourly chart's review
On Thursday, the EUR/USD currency pair raised to the resistance level formed by the 100-hour SMA and the weekly S1 at 1.0856. During today's morning, the pair was testing the given resistance.Note that the exchange rate is supported by the 55-hour SMA near 1.0810. Thus, some upside potential could prevail in the market. Meanwhile, it is unlikely that the rate could exceed the weekly PP at 1.0937 in the short run.
Also, the currency pair would have to surpass the 200-hour SMA and the Fibo 23.60% in the 1.0880 area. If the given resistance hold, it is likely that the pair could reverse south and re-test the monthly S1 at 1.0776.
Hourly Chart
On the daily candle chart, the rate has bounced off the low level of April and March near the 1.0775 mark. This level strengthened the support of the monthly S1 simple pivot point.
Daily chart
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Short sentiment increases
Since Thursday's GMT trading hours, 74% of open EUR/USD position volume on the Swiss Foreign Exchange was in short positions.
Traders remained short despite the recent retracement back up.